01/19/13

Government Spying on everyone -Thanks Microsoft

gAtO lEaRnOn 01-01-213 we hear that Microsoft buys Skype and makes changes to allow Police surveillance. Then on 01-07-2013 we hear that a professor at the Warsaw University of Technology, Wojciech Mazurczyk, found a way to insert secret 70 bits of data and add secret information similar to steganography.spy-spy

Lawful Intercept is what it’s called and we just heard punch – counter-punch from the government. I just posted about corporations and governments using offensive cyber weapons to fight crime, but this looks like just plain old spying on citizens like China, Iraq and Syria does. Skype is owned by Microsoft and we know that Word and other products have back doors for them to snoop and governments to use in criminal cases. I guess they do it the proper way and get a real FISA document to monitor us it’s citizens.

mEoW 12-30-2012 our re-elected President Obama signs FISA Warrantless Wiretapping Program. STOP – SAY WHAT. mEoW – Forget about gun control how about the privacy of citizens, are we becoming like China, Iraq and Syria the more I find out about this the crazier it becomes. I hate Skypes but now finding this out NO WAY DUDE-

I did a little digging and I found a document from the Straford hack from the LutzBoat crew and this has been on the play board for a long time. More and more governments that play nice with the America and Microsoft will have to live with the fact that they are spying on us, the people. I voted for Obama but I’m pretty sure any president would want to be able to justify this abuse of power to monitor it’s citizens, what get’s me is we scream and yell when other countries do it but here we are doing to ourselves and nobody is talking about this- Hay press wake up. I have nothing to hide but if you do you have been warned – enjoy your government spying on you behind your back - gAtO oUt

Lab Notes:

IT security continues to be the greatest challenge facing government CIOs worldwide. Most experts agree that governments require stronger partnerships between the public and private sectors for both better protection of government IT systems from intruders and for greater visibility into operators’ network traffic to fight crime. However, government systems and intelligence activities constitute a very sensitive information environment. Governments must proceed with caution when forming technology partnerships for hardening their IT network security. Melissa E. Hathaway, who in February 2009 was named to be the Obama Administration’s top cyber security official, points out how

Lawful Intercept

Challenge

Criminals, predators and hackers now use chats, blogs, webmail and Internet applications such as online gaming and file-sharing sites to hide their communications.

Solution

Qosmos provides law enforcement agencies with a powerful solution to identify a target using multiple virtual IDs and intercept all related IP- based communications. Any trigger, such as a “user login = target” initiates intercept of all IP traffic related to the “target.”

Example of recognized applications and protocols

VoIP Email (POP, SMTP)

Webmail (Gmail, Hotmail, Live Mail, SquirrelMail, Yahoo mail, etc.)

Instant Messaging (Aim, SNM, Skype, Yahoo, Google Talk, QQ, Maktoob, Paltalk, etc.)

Online games (World of Warcraft)

Online classified ads

Audio/Video (H.323, SIP, MGCP, RTP, RTCP, MMSE, RTSP, SHOUTcast, Yahoo Video,

MSN Video, SCCP, etc.)

Web applications (Dailymotion, Google, eBay, Google Earth, HTTP, MySpace, Wikipedia,

YouTube, etc.)

Example of information extracted

Caller, phone number, called party, duration of call

Webmail login, email address, sender, receiver, subject matter, attached documents

Instant messaging sender, receiver, contact lists and status

Forum login, IP address, MAC address, mobile ID (IMSI, IMEI)

Protocols identified even for unidirectional traffic (e.g. email by satellite).

http://www.huffingtonpost.com/2012/12/30/obama-fisa-warrantless-wiretapping_n_2385690.html

http://enterprise-call-recording.tmcnet.com/topics/enterprise-call-recording/articles/321789-sounds-silence-skype-hold-more-than-expected-thanks.htm

http://www.ronpaulforums.com/showthread.php?399961-Microsoft-Buys-Skype-Makes-Changes-to-Allow-Police-Surveillance

01/7/13

Happy Birthday Bitcoin -Book Release Jan 9

Happy Birthday Bitcoin – Available NOW-eBook -http://www.amazon.com/dp/B00AYA4SVS

bitcoin_cover_cut_02

Jan 9 new Book release -Digital Virtual Currency and Bitcoins -The Dark Web Financial Markets – Exchanges & Secrets

On this day Bitcoin turns 4 years old. As any 4 year old will tell you this has been a wild ride. From a little know digital currency to today’s acceptance into the legal banks and marketplace this little currency that could has shocked world leaders, stunned banking officials all over the world trading and is today in the $13.5-USD range.

Pierluigi and I (gAtO) first came across this when we were covering Wikileak problems and writing our first book – The Deep Dark Web – the cyber underweb we’re finding this new currency and using it because it was working and had no government ties. Bitcoin has been vilified by most governments but the US -UK and it’s ties to currency transaction systems like Visa, Mastercard, PayPal and others (IMF and SEPA, SWIFT to name a few)  became the shot heard around the cyber world.

On the one hand you have Anonymous and other hacktivist using it to show how it cannot be controlled and the other side is the European Central Bank (ECB) published a report in Nov-2012 about finding a solution to Bitcoins place in (FRB) Fractional Reserve Banking, the cornerstone piece of all banks to create money out of thin air.

Thomas Jefferson said: “I sincerely believe that banking institutions are more dangerous to our liberties than standing armies. The issuing power should be taken from the banks and restores to the people to whom it properly belongs”

Digital virtual communities have exploded in recent years – this phenomenon is enabled by social media and the changing world we live in. In some cases some communities have created their own currency for exchange of goods and services but it has expanded to outside their own circles to provide a new medium of exchange, creating new digital virtual currencies that are changing the world.  Bitcoin-Central is now the first Bitcoin exchange to become a bank with guarantee funds insured up to EU$100,000.

When the ECB published that report it was the white flag of surrender but also assurance that the bankers can still control some of it’s power. Let’s face it FRB is the biggest scam by bankers – as they explain this system it is done to expand the economy by freeing up capital that can be loaned out to other parties. WoW that sound so nice of them to do this favor for us in reality it set’s up the cornerstone or their financial profits from nothing.

FRB is were someone deposits 100 dollars in a bank they are required by FRB laws to keep 10% in the vault but now they can loan out 90% of that deposit because they got the governments (us the tax payers) to insure that $100 deposit in case they make bad loans or to make sure they get their bonus checks. So if you came back to the bank to get your money out and they squandered your money on bad loans or just shoddy business practice -oh well no problems – the government will pay you back with our own tax dollars. In other words they take my tax dollars and pay me back with it and then they increase my taxes so that the bankers can keep doing the same thing over and over again. No responsibility and to think that bankers are look up to by business and in persons to be highly respected and good citizens- right!

This is the biggest scam in history they have no responsibility, no reason to be wise and make good investments because they have politicians in their pockets. You know those people that we voted for that are supposed to represent us the people, no they represent these scum’s the bankers. The funny thing that they have no control of Bitcoins like fiat currency. They cannot just print more money up; Bitcoins are created in a way that revolves around MATH – Yeah most people hate math but this time it works so good that these bankers have tried everything in their power to control Bitcoin and other digital currencies and they cannot; they failed.

I will be the one to first tell you that Bitcoins as they are today will NOT be the answer only 21 million total Bitcoins will ever be created and the world needs a bigger unit to scale this for a worldwide monetary solution. Other digital currencies will still be created because of the Bitcoin experiment; and as the world becomes more digitalized we will see that government or corporate control currency solutions will not be trusted by the world community.

Look at Canada’s attempt at Digital currency MintChip at first it was hailed as a winner the first digital currency backed by a world leader like Canada. But somehow after much fanfare and lots of money spent they awarded the team with a the best solution and hid it from everyone – it went to the back room in the filing cabinet never to be heard again. In the 2 or so years that the Canadian took to develop this system it was convinced (by the global bankers) that this would not work. Canafa caved in to the pressure and MintChip is dead – DOA

Maybe the bankers told them to shelf it, it would setup the premise that other governments could do the same and if they can bypass the current system like SEPA or SWIFT or IMF or the World Bank you see they control the financial system and if they don’t like you or you pissed them off they will not allow your country to function in it. Control of the financial network is how the “evil global bankers” control the toy box.

We hope that our new book will open up doors and minds to the possibilities of digital virtual currency and Bitcoin worldwide.

This book explores the new digital currencies and how they are changing the world. When we were researching -The Deep Dark Web book we saw that some of the criminal elements were using this new currency Bitcoin but we also saw that legit business were also adapting to this new currency. We hope to help you learn what is happening with this new currency we cover -Who uses this currency -What are the financial aspects – Governments, Business, Merchants and Criminals. In all we hope to guide you with some of the questions you have.

This book will be an invaluable resource for cyber security professionals, financial policy-makers, business experts, lawyers, merchants, scholars, and researchers, this book provides a comprehensive research from a International cyber security  perspective, technical, and financial implications of the new digital virtual currencies.

 

keywords- digital currency, bitcoins, bitcoin, buying bitcoin, alternative currency, decentralized currency, e-currency,  cryptoxchange, online currency, money, bit coin, cryptocurrency, crypto-currency, bitcointalk, bitcoin talk, exchange, usd, euro, market, bitcoins, transaction, transfer, credit card, bit coin mining, gpu,  virtual currency, cryptopunk, Digital virtual currency,

01/2/13

Bitcoins are Under Attack

gAtO tHiNk - the monetary system is f%^k and so are we.  My good friend Pierluigi and I have been busy putting together a new bookDigital Virtual Currency and Bitcoins – coming out in a week or so and the picture of the state of all currency is really in bad shape. Virtual currency is not new it is more a transactional system than currency but unlike PayPa, Visa, Mastercard with Bitcoins you can become a miner and create your own coins. check it out- https://blockchain.info/nodes-globe 2002_currency_

I have include the table of content so you can see our approach to understanding what is happening and the war that global bankers ar wagging on this new system of currency. Why are they fighting it so hard because more people are beginning to see that a currency that is not control by global bankers and by the people and for the people is a better solution. Of course they are vilifying Bitcoins but as other systems have tried to get their teeth into this new worldwide currency Bitcoin come out on Top.

We hope that you will gain some knowledge from our newest venture into this mad, mad world of money- as they say “Follow the money” and we did but I can tell you the more I learned the madder I got that we have been tricked into thinking that the global bankers are the good guy. Facts is the world is in debt over 10 times over just on interest alone. The world owns more than we create – THE WORLD not a nation. and if look real hard 1% of the people control 40% of the wealth in this world. It is not a national issue it’s a world issue.

We are just cyber security professional but this has been an eye opener as we see the Monterey Market System as a sham to keep the people of the world in an ever ending debt -gAtO OuT

You can pre- order just send us a message-

Table of Contents

Foreword 

Digital Virtual Currency and Bitcoins

   Digital virtual Currency Steps In: 

1. What is Digital currency: 

Digital Currency:

Shadow Economy

   System D and technology 

   The Cyber Underground 

   Black market payment 

   Perfect Money 

   Liberty Reserve 

   Webmoney 

   Pecunix 

   Voucher-Safe 

Digital Currency -Trust Thru A Consensus 35

Where does Digital Currency get it’s value? 35

   Trust Thru A Consensus 37

Cyber-War Digital -Vs- Global Currency 39

Cyber Death Of The Banking Industry 42

   Those that control the quantity of currency have all the power. 42

   Cyber Fixed Rate Exchange 2012 43

System D- Bitcoin’s Underground Economy 47

Digital Currency and Policy Makers 50

   American Express Gamer Digital Virtual Currency 50

   Facebook Credits 50

   Google Bucks 51

   Moba-coin 51

   Mastercard 51

How a bit coin Transaction Works: 53

   Iran and Bitcoins: 53

2. Who uses Digital Currency 55

Bitcoin -Vs- Evil Global Bankers 55

   Credit Cards 2 BTC-Bitcoin – BTC-Bitcoin 2 Credit Cards 55

Case Study Black Market Silk Road 57

Money Laundering in -The Digital Virtual World- 63

   Games: 63

DC -Digital Currency – Launder CASH to Bitcoins 64

USD (Major banks, 7-11, Walmart, CVS) 64

Bitcoins cannot be traced back to the Owner 65

Happy Satoshi Nakamoto -Bitcoin- Day Nov 1 67

   money $$ with – NO GOVERNMENT  – NO BANKS 67

Underground Financial Networks 69

   Reloadable Debit Cards - Basics 69

Western Union /MoneyGrams Basics 71

   E-currency Basics 73

   Trust Networks Basic 76

   Borrowed Bank Accounts / Underground ATM cards 77

   Mule Networks 78

Global Bankers Fear Bitcoins 79

   European Central Bank report October 2012 report: 81

Secure Bitcoin Trading Online 84

   Introduction: 84

   Credit Cards 2 BTC-Bitcoin – BTC-Bitcoin 2 Credit Cards 84

   Creating a secure identity: 85

   Setting up OpenPGP email 86

   Use Bitcoin-OTC 87

   Using the Web-Of-Trust 87

   Use an escrow 88

3. Digital Currency Financial Stuff 89

Bitcoin and Forex Trading 89

   But really let’s take a look at FNIB – and Bit4X – 90

Bit4X – the  new kid on the block – 90

Digital Currency 92

Top Ten Bitcoin Financial Charts 92

Virtual Currency Schemas 

Virtual Currencies and banking, disaster or opportunity? 98

   Price stability 99

   Risks to financial stability 99

   Risks to payment system stability 100

Bitcoin Still Up 137% YTD 2012 102

   Geek Stuff – API to Bitcoin Block 103

Buying bitcoins 104

   Major Exchanges 104

   Exchanges are listed in alphabetical order. 104

   Fixed Rate Exchanges & Others 118

   Direct / Bulk Buying 123

   Other Financial Services 123

   Physical Bitcoins 124

4. Legality of Digital Currency 125

Bitcoins entities and possible legal responsibilities 125

Law enforcement and financial institutions against bitcoins 127

Legality of Bitcoins-Digital Currency? 130

   Virtual Currency Real or Not 130

2012 timeline of the legality of Bitcoins around the world: 133

5. Governments and Digital Currency 142

Government -Vs- Bitcoin Anonymity 142

Canadian Mintchip And Bitcoins -Whats Up 147

   The MintChip System 148

   Hosted MintChip (Cloud Account) 148

   Transactions-Sender and Receiver 149

   MintChip Value 149

   Sustainability 150

   Architecture 150

   The MintChip – Value Creation 150

   The MintChip – Security Overview 151

6. Business and  Digital Currency 152

Merchant Tools for Digital Virtual Currency 152

   A basic overview of the Payment Gateway follows 153

   List of Features and Advantages 153

   Mt.Gox “Pay Now” Button 154

   Now supporting Magento! 154

Mt.Gox instant Merchant API 155

7. Cyber Crime Digital Currency 156

Cyber Crime Digital Currency 156

Cybercrime and Anonymous Cyber Economy 158

   Impact of digital currency schema on financial ecosystem 158

Digital currency schemas 160

Money laundering 165

Theft of digital currency 170

   Malware, the new generation of digital robbers 174

   Bitcoin Botnet Mining 176

   Deep Web, Botnet and Bitcoin mining … a dangerous mix 183

Counterfeit digital currency and double spending attacks 190

   A race attack 192

   The Finney attack 192

Bitcon and money laundering 194

   Simple scenarios for money laundering 196

How To- Digital Money Laundering 199

   Digital Currency ExchangeExchangers 2010 202

8. Bitcoin and Digital Virtual Currency 204

Get a Bitcoin Wallet and Make FREE-BitCoins Yourself 123 204

   My Mining Machine 205

Bitcoin Miners Pools and how it works – 206

Bitcoin Wallet 210

   Who, What and Where is a Bitcoin Wallet? 210

Bitcoin Qt 211

The beginning of the Bitcoin question 214

   What is the Bitcoin Distribution Network? 214

   Analysis of the model 216

   The model 216

   How does Bitcoin work? 218

Bitcoin  exchange operates as a bank 222

Welcome to the Dot-BIT project 226

Miner: 226

   Current Miners 228

   OZCoin – http://ozco.in 228

   P2Pool 229

How Anonymous is Bitcoin? 231

   What Users Can Do To Increase Anonymity 231

Bitcoin Mining Scam 233

   The Bitcoin Miner Scam 234

   Bitcoin Scam -How does it work? 235

Satoshi Nakamoto, the manhunt 238

   Who developed Bitcoin Virtual Currency Schema? 240

9. Future of Digital Currency 246

Bitcoin and Digital Currency in the New World 246

Dominate The Future With Bitcoin 248

10. Geek Stuff Digital Currency tools and tricks 256

Address Tags 256

   What Are Address Tags? 256

gATO Mining Rig – Information 258

   ATI Radeon HD 4670: 259

Bitcoin Miner for Websites 260

   Quick Start Guide to add the Miner to your website 260

   Explaining the Miner to your visitors 261

   Fees 261

   Requirements 262

   Advanced Usage 263

 

12/23/12

The Future of Bitcoin and Digital Currency

gAtO ThInK -Bitcoin is fast becoming the new payment system of the cyber revolution. Just like Paypal it became a new virtual currency where anyone can stash their money and receive and make payment (a digital Bank). Notice that I did not say currency, why because it just like Paypal and we don’t call then a currency?merchant_Cards

PayPal enables any business or consumer with an email address to securely, conveniently, and cost-effectively send and receive  payment online. Now Bitcoin is doing the same thing but with a digital encrypted wallet, low transaction fees and I can even keep it in my smart phone or device and used it anywhere I need it. What’s the difference is my question why have the status-quo labels Bitcoins evil, because the underground uses it, no because the bankers have not figured out how to make money on it. The Central Europe Bank in charge of the EURO is already looking into Bitcoin Fractional Reserve Banking rates.

So they say that Bitcoins and other digital virtual currencies are evil and used by criminals. Pay pal is being used by millions of cyber criminals everyday so is Visa, Mastercard and SEPA and SWIFT. So why don’t we go after them, maybe gAtO is dumb but we should go after the criminals not the currency. When they counterfeit paper money we trash the paper but we go after the criminals. Thats why I don’t understand the reason to vilified a process, a system that works, is secure encrypted and safe, it can’t be counterfeited, they can’t double spend it. The only conclusion after many months of research is simple the bankers cannot control it and lose power.

The 1% the plutocrats of the world control all the currency and transaction system. They have sold us the fairytale that they are protecting us the consumers, the people. The financial people all tell us that they do everything in their power to protect us when in fact all they care is about you in debt and there profits and bonus checks. Every corporation is under law to provide the maximum profit to their shareholders, they will announce massive layoffs of people and their stock prices rise every time they do that.

Where are the companies that care about the people they employ, where are the companies that really help the community where they are. We hear about offshoring and using slave labor at Apple manufacturing plants and then we hear about 6-8 hour lines to purchase those same product. I want to blame the hipsters for wanting their new toys from child labor camps then asking if the organics vegetables are pure without pesticides. But I type away on my Mac so I’m just as guilty as anyone else.

Digital currency / transaction systems- Bitcoins-BTC – Liberty Reserves – WebMoney-WMZ – LiqPay – QIWI – PayPal – OKPay – Payza/AlertPay – Yandex – UKash vouchers – SEPA bank transfer.

It’s the current or existing state of affairs that the financial people want to protect they hate this change because they cannot control it. They know the loop-holes and how to hide their fortunes and something like a Bitcoin is a shot heard around the world and you know what people are listening -gAtO OuT.

12/3/12

Bitcoin and Policy Makers

gATO ReAd- that holiday madness spending increased by 35% by smart mobile devices – like phones and Pad devices these new devices are also the target of digital currencies everywhere. Companies see the need to integrate digital currencies no matter what into their revenue stream. Here are a few attempts:

American Express is the first financial giant to enter the Digital Virtual Currency game, it has payed 30-mill for Sometrics – a game money processor gamecoins.com so AE has taken the first steps into Virtual Digital Currency it see’s a future in this new revenue stream and their rewards packages so it’s a fit made in gamer heaven and American Express customer base.

American Express Gamer Digital Virtual Currency

Facebook is also on the fast track to makes it’s Payment business grow it’s Facebook Credits. The requirements for money transmitter licenses vary from state to state but in the global scale Facebook is ready to get it’s digital virtual currency into the Facebook arena.  From FaceBook filings -Payments. We provide an online payments infrastructure that enables Platform developers to receive payments from our users in an easy-to-use, secure, and trusted environment.

Google Bucks stopped short of launching – Google still made the code available- “bitcoinJ” still stand tall in googles codebase  — http://code.google.com/p/bitcoinj/  — .

Moba-coin In Japan DeNA available to players in the Mobage Digital gaming reports second quarter earnings – bringing in 700 million in Japan alone. Moba-coin rose outside Japan to about 30 Million. DeNa reports a 45% year to year 627 million up 38 percent over operational profits. Digital currencies are popping up everywhere local, regional to worldwide. Mastercard is also on the gray area of a deal in Bitcoin with BitInstant.com they are one of the gatekeepers of the Digital Virtual Currency marketplace and into Bitcoins -BTC -BitStamp, -DWolla or Mt.Gox and many more like a simple MoneyPak from Walmart and your in the Bitcoin business it’s that simple..

Bitinstant is one of the leaders in Cash to anything:

MoneyPak From:—  MoneyGram – CVS – Jewel/Osco – Duane Reade – Stater Bros. – Albersons – Walmart -

A Bitcoin WALLET is simple as apple pie – all Bitcoin are numbers/letters you want to send me some Bitcoins – HERE – 1DhBiBeYD4JNZvim4EefnEoFV2WMFc7e5d -  send it to my wallet. Were is my wallet well Online- you can have a wallet on your computer and of course have a paper backup of your primary key. Or you can us a service to keep your wallet but you have it encrypted  and you can have a backup of your wallet to your computer and once again on paper. Since the wallet is only needed to connect to the p2p Bitcoin network well you can get you money anywhere you have a connection and at least your paper key backup. https://blockchain.info/wallet is a good Wallet service and one they have lots of Bitcoin information to boot and yes gAtO stores his wallet here. I trust them but I have a backup.

How a bit coin Transaction Works:

http://occupycorporatism.com/wp-content/uploads/2012/11/06Bitcoin-1338412974774.jpg

Then we hear about Iran and Bitcoins:

Hyperinflation has made Iraian money dollar-less so now they are turning to (DC) Digital Currency Bitcoins. The advantage is that they can be swapped for US currency and kept outside the country. Iran is not the only one – As we see in Syria there Internet closure not only does it stop communication but it’s slowed down money escaping the country into cyberspace. This is another way for a government to stop the Digital Currency from expanding but these are drastic ways that cannot be kept up for long. The Internet will come back and so will the new digital dollars like Bitcoins.

So Iranians are poking holes by using Bitcoins with VPN’s and Tor :No I been checking TorStatus and Yes Syria has no Tor OR at all and Iran has 3-4 open ToR and a few Bad ones. So Tor is not a connection but a new outlet is the Internet in a suitcase used by the U.S during the Arab Spring is the same pokes and peeks that the dissidents are using to get to the outside world. But the fact is that they can get around and register offshore accounts that are protected from the Iranian government or economy. If Iranian keep using Bitcoins when they come out of sanctions and restrictions they are a major Oil country and Bitcoins may be intrenched into their economy. What happens to this currency???

Bitcoin has come out on top of most attempts to stop it but on it’s 4th birthday Jan 9 2013 this 4 year old is ready to pounce the worlds financial markets. Now Belgium-based Society Worldwide International Financial Transfer (SWIFT) is one of the gate-keepers that must be challenged. They serve as an International Financial Law interpreters like it blocks any Iranian bank blacklisted by the EU Union from using it’s International payment system. Do you think SWIFT wants a competition like Bitcoins with just about 0% transaction fees- that cuts to much into it’s base income model. The velocity of transfer is being deleted more and more by new digital currencies Bitcoin is just one of the first to survive.

Yeah I’a a Bitcoin supporter now but it’s still beta ware people, 21 million Bitcoins we need Bitcoin 2.0 for a world market economy maybe google BitcoinJ is the model??? - gAtO oUt 

Virtual Currency

 

System-D

Google Bucks

http://code.google.com/p/bitcoinj/

FaceBook Credits

http://www.americanbanker.com/issues/177_35/facebook-credits-money-transmitter-license-bank-regulation-1046825-1.html

American Express

Sometrics – Game Dollars

http://techcrunch.com/2011/09/20/american-express-buys-virtual-currency-monetization-platform-sometrics-for-30m/

High retail sales expected to drive revenue growth

Canada’s MintChip

BitCoin

Mastercard/Bitcoin

http://www.forbes.com/sites/abegarver/2012/08/24/bitcoin-mastercard-everywhere-you-shouldnt-be/

 

11/30/12

Canadian MintChip and Bitcoins -Whats Up

gAtO’s bEeN - checking out digital currencies and I find that The Royal Mint of Canada was researching a digital currency, they had a contest for developers witch gave the winners over $50,000 in .9999 gold. —/ Stop here so the digital currencies developers were payed in GOld not in their own currency or canadian money. Silicone Valley works with stock options and stuff for their geeks but -// I’ll give you the full tour below but the similarity to Bitcoin is uncanny.

Ok-OK a government watching it’s people transactions -umm I don’t like that // the real killer – 0% transaction fees. Do you think that the “kings of making money off transactions” Visa-MC-AE- Paypal – 1 1/2 to 3% transaction fees and the banks behind this would allow it. Reducing the velocity of money and NOT making money with free 0% transactions on digital money – the bankers did the math and the politicians killed this quite like…//

 

So what happens with MintChip – Canada’s Digital currency-  it has disappeared into the Bermuda Triangle of digital currencies holes – a news blackout. The only thing I found was The MintChip Challenge website – http://mintchipchallenge.com/updates (sad the awards were Oct. 25 -Not a word) Not a sound about a digital currency that a government is trying to use. Why the news blackout??

Canadian commissioned social-Impact researchers requested the immediate halt of the project due to concerns over marginalizing technologically-deprived Canadians. http://en.wikipedia.org/wiki/MintChip

So a social-economic reason is the only thing they can come up with right!!! The government gives out food and cash to the poor why not MintChip and why the news blackout I ask again. So while a Country try’s to build it’s own digital currency and FAIL Bitcoing is going up 135% in the last 3 months this must mean the people rather put their trust in the “ether” of Bitcoins and Miners and all the problems than a government back digital currency. mEoW

 

Now that is a statement by the people and for the people – People just don’t true government anymore but the questions of why and is more important -HOW this was kept so quite -mEoW – gAtO OuT

Ref:

http://mintchipchallenge.com/updates

http://www.delib.net/dblog/

http://www.royalmint.com/?promocode=W13G&__ja=kw:the+royal+mint%7Ccgn:The+Royal+Mint%7Ccgid:2446467505%7Ctsid:38842%7Ccn:Brand+%7c+USA+%7c+_Brand%7Ccid:71526745%7Clid:13878890%7Cmt:Broad%7Cnw:search%7Ccrid:12338821465&gclid=CJuG6amT-LMCFSFyQgodNEsA1Q

http://en.wikipedia.org/wiki/MintChip

The MintChip System

The MintChip digital currency works on the Internet, in the physical store, on mobile devices, and enables easy person-to-person transactions. You can choose to register an account in the cloud, download an application or obtain a MintChip device to transact in online and offline environments. The MintChip system is based on a direct asset transfer model that moves value between trusted stores without the involvement of any intermediary. Each participant has a trusted store loaded in an account in the cloud, mobile device, USB stick on a PC or a tablet.

Whether in the cloud, or inserted into a device that you carry, the core of MintChip is an integrated circuit that holds electronic value and transfers value from one chip to another in a secure fashion.

Hosted MintChip (Cloud Account)

A Hosted MintChip Store allows consumers and merchants to transact and manage their MintChip value remotely via a ‘cloud account’.

The operator of the Hosted MintChip Store manages a user’s MintChip store (account). The operator authenticates the owner of the store, and acts upon their instructions to move value into and out of the owner’s MintChip store (account).

Transactions

Sender and Receiver

A complete MintChip transaction always consists of two MintChip devices, a Sender and Receiver. A Receiver’s MintChip ID must be known by the Sender, this is the main purpose of the MintChip Request transmission.

MintChip Value

On receiving the value request message, the Sender’s MintChip creates the value message that represents a monetary value in transition. The value message contains the requested monetary amount and can only be consumed by the Receiver’s MintChip identified by its unique ID. The value message is digitally signed to protect against any tampering. Once the value message is created by the Sender’s MintChip, the MintChip’s balance is decreased by the corresponding value. This transaction is irrevocable. The Sender cannot stop or cancel the

transaction after the value message has been created. On receiving the value message, the Receiver’s MintChip verifies the validity of the message using the digital signature and the Sender’s public certificate embedded in the message. It also verifies that the value message is not a duplicate using the challenge value. If the value message is valid, the Receiver’s MintChip balance gets incremented by the amount specified in the value message.

 

Sustainability 

Designed by the Royal Canadian Mint, MintChip has been architected with security and trust at its forefront. The MintChip solution delivers privacy and convenience to consumers and provides merchants with a cost effective payment option that can easily monetize digital content. Just like cash, the MintChip system is based on a direct asset transfer model that moves value between trusted entities without the involvement of any intermediary.

There is no need to provide any personal information when paying with MintChip. MintChip payments are irrevocable and secure.

Architecture 

The MintChip ecosystem has been designed to emulate the existing coin distribution model, i.e. MintChip is minted by the Royal Canadian Mint and distributed into the market by a Trusted Broker, to be used by consumers and merchants. 

The MintChip – Value Creation

 

The MintChip system models the attributes of cash.

The MintChip Minter is the trusted entity that creates the MintChip value and which it puts into circulation by selling value to the Broker. The Broker trades MintChip value with the users of the system and MintChip value is exchanged with consumers and merchants. The Broker debits and credits the merchant and consumer bank accounts in exchange for MintChip value. Senders and Receivers are users of MintChip value and may be consumers, merchants, businesses, Government, etc.

 

The MintChip – Security Overview

 

The MintChip chip is a Tamper Resistant Module (TRM), sometimes also called a Hardware Security Module (HSM). The Value Transfer Protocol cannot be modified without detection.

The integrity of the TRM must be assured and the cryptographic mechanisms protecting the Value Transfer Message are adequately resistant to attack.

 

The chip used for the MintChip store must adequately represent a TRM.

The security of the chip (including firmware and software) is the greatest vulnerability in a MintChip system; therefore MintChip will use security-hardened chips with regularly planned security upgrades.

The MintChip system is deliberately designed for changes to both the chips and cryptographic mechanisms in a transparent fashion. It is even possible to force the expiry of a particular MintChip platform version.

Unlike other conventional electronic payment systems, MintChip does not have the same threat model. MintChip can operate off-line or on-line unreferenced to any trusted party and the payment is instant and irrevocable.

Recap

 

FuzionApps would like to bring this offering to the US, using our mobile app DeMerchant MintChip. By using a technology that’s already in place, we can bring this to the US Market faster that starting from research and development. The demand for electronic transactions is on the rise. Of all the offerings in the market, we believe this to be the most viable, assessable and secure. Contact Laquitta at demerchant@fuzionapps.com for a demo of our mobile app prototype.

FuzionApps, Inc.

1750 Northshore Drive Missouri City, TX 7459 (281) 403-1087

www.fuZionapps.com  – Point of Contact: Laquitta DeMerchant demerchant@fuzionapps.com

11/19/12

Money Laundering scenes in -The Digital World

gAtO look - at 2 different Money Laundering scenes in -The Digital Virtual World-

Games:

Farmville, Second Life and World of Warcraft these 3 games have been used by organize crime for money laundering. here are 2 examples —

How2-1- An item in a virtual game world have value in the real world – In China (game sweatshop-and other places) they set up sweat shops for games and get people to play the game. Then they take any magical Item that they find and they pay them off but then take the Item and sell it to other players for big bucks. It’s a a game sweatshop – When they setup shop in small Chinese towns this is an attraction and people flock to free games and computers.  game sweatshopsound’s like not a big deal but they make them play for 20-22 hours a day slave labor for game items…

Mapping out the BitCOin

How2?2 Stolen Credit Cards Launder Money in the Game World: Now we take the same game and show you how criminals use games to pass profits from stolen credit cards.  This is another way that the criminals scam CC. We know Credit Cards (CC) number are stolen every other second in cyberspace so now they take these credit cards and buy virtual Items in these game sites and then sell them to others for clean money. This simple method works they setup an account milk it for a few weeks and then destroy it and move on to the next ID.

DC -Digital Currency – Launder CASH to Bitcoins

So if a CrimeBoss has a lot of cash he can send his men down to-// Walmart, 7/11 or CVS Pharmacy -// and purchase MoneyPak then they can setup accounts online and exchange these MonyPaks to Bitcoins (how about MrBitCoin)- Now once in this world they can be exchanged for goods and service and even converted to Pre-loaded $$ CC (Credit cards) and just spend the new clean money anywhere they want to. Also even if they get busted they get to keep their BitCoins ?WHY? because they forgot the password to their wallets and without the password well the government does not get the money. As MrBitCoin shows below – it’s international so we can now take money from USD and convert it to AUD- RUB- BRL- INR and it goes thru non of the traditional channels. Why doesn’t Law enforcement tackle this in your face transfer of wealth – evil global backers- are keeping and eye on all these affairs..

— If you rob a bank you go to jail – a bank robs you they get a raise — this all may be changing the order of things..

MrBitCoin  – https://www.mrbitcoins.com 

  • Fixed Rate
  • AUD (Cash deposit – Westpack and Commonwealth Bank)
  • USD (Major banks, 7-11, Walmart, CVS)
  • RUB (Qiwi and Cyberplat through BitInstant)
  • BRL (Boleto through BitInstant)
  • INR (Cash deposit – HDFC Bank)

Problems: Bitcoins cannot be traced back to the Owner

Since 9/11, counter-terrorist agencies have  tracked the flow of money to identify transactions that match the profile for money laundering or involve the account of a person suspected of terrorism or with links to a terrorist network. Agencies are empowered to instantly freeze such accounts. With BitCOins this cannot be done – the Wallet is encrypted with a password so unless they are legally forced (or tortured ) to give the passwords – these laws will have to change to adapt to the new Digital Currency (DC) and how things work. The global bankers will have to adapt or their industry will die.

The theory is that, by denying terrorist and criminals groups access to their money, authorities can stop them buying munitions and small arms and paying for suicide bombers. This approach has been highly successful in identifying and dismantling terrorist networks. Now they need to adapt and learn how this new DC works because it cannot be stopped.

A few days ago WordPress (bloggin platform) the 3rd largest Web-App in the world accepted Bitcoins the Bitcoin market responded because now as more and more merchants use Bitcoins they cannot stop the flow. People are free to spend their money and the capitalist love it when people spend money – Come on GOLD is nothing but a ROCK – when your hungry Gold do do a thing folks…

Merchant will use Visa, PayPal BitCoins and they will see the lowest transaction fee’s they seen in years PayPal and Visa charge up to 3% but Bitcoins can be as low as .005% that’s a very small chunk of the profits so  business will like that more. You can’t print any more Bitcoins that is controlled by Math and crypto  – So “eveil global banker” your move next – you can’t say only criminals use Digital currencies legit business use it now – So get ready cause here it comes  - gAtO OuT 

11/13/12

CYber Investigation over General Patraeus

CYber Investigation over General Patraeus

gAtO rEaD – NO CRIME committed- that the investigation for the top CIA general was because someone sent an eMail that said” I saw you touching the Generals leg at Dinner -Stop It” Yeah so one lady said to another lady – STOP MESSING WITH MY MAN – Pow – ZAP they get a court order to go thru someones eMail.

So if we take this premise that Judges will sign -COURT ORDERS to search your emails and any other emails that link it because of a jealous lover. It looks to gAtO that they have to much POWER – or the FBI is gonna search everyones emails now – legally. Court Ordered

This should send shock waves thru our industry – everyone is now warned that anyone’s email can be open to LE anytime and just about for any reason. I trusted the system, I trusted the Judges but lack of a crime should of not happened. There was NO CRIME committed the investigation turned out. But it has now taken down the reputation of 2 generals. NO CRIME

Now these are 2 famous generals what chance do mere mortals have that our eMails are going to be court order to investigate why simply because they can now. This shows to me the lack of justice or the erosion of justice that is coming down the cyber pipelines. If this is now a wake up call for security professionals to wake up and smell the coffee. Your email will be next unless we support less government control of our digital rights.

Freedom of Speech in cyberspace is a right not a privilege -gAtO oUt

http://www.cbsnews.com/8301-18563_162-57548694/fbi-role-in-petraeus-investigation-questioned/

mEoW

11/6/12

Dutch government to give law enforcement authorities the power to hack into computers. This also means hidden servers on tor

gAtO ThInK - It’s time to fight back and tighten the security!

The Dutch government wants to give law enforcement authorities the power to hack into computers, including those located in other countries, for the purpose of discovering and gathering evidence during cybercrime investigations.

The Dutch government wants to give law enforcement authorities the power to hack into computers, including those located in other countries, for the purpose of discovering and gathering evidence during cybercrime investigations.

In a letter that was sent to the lower house of the Dutch parliament on Monday, the Dutch Minister of Security and Justice Ivo Opstelten outlined the government’s plan to draft a bill in upcoming months that would provide law enforcement authorities with new investigative powers on the Internet.

According to the letter, the new legislation would allow cybercrime investigators to remotely infiltrate computers in order to install monitoring software or to search them for evidence. Investigators would also be allowed to destroy illegal content, like child pornography, found during such searches.

These investigative powers would not only cover computers located in the Netherlands, but also computers located in other countries, if the location of those computers cannot be determined.

However, if the investigators can establish that a computer of interest is located in a foreign country, they will have to ask for assistance from the authorities in that country.

In his proposal, Opstelten used a case in which investigators from the Dutch National Police infiltrated “hidden” Tor websites that hosted child pornography, as an example of a situation in which the geographical location of the computers couldn’t be determined.

The Tor network allows its users to set up so-called “hidden services” that are only accessible from within the network using special addresses. When accessing such a service, a user’s connection is routed through several random Tor nodes, which prevents him from determining the real Internet Protocol (IP) address of the server hosting the service.

The Dutch police investigation referenced by Opstelten in his letter took place in August 2011 and two of the infiltrated Tor websites were hosted on servers located in the U.S.

The new legislation will provide strict safeguards for the proposed investigative powers, Opstelten said. Law enforcement authorities will only be able to exercise such powers when investigating offenses that carry a maximum prison sentence of four years or more and only after obtaining authorization from a judge, he said. Furthermore, all such actions will be automatically logged and the logs will be accessible for later review.

Cybercrime is a serious problem that needs to be tackled, but the proposed measures are not the right ones and they pose a serious risk to cybersecurity, Ot van Daalen, the director of Dutch digital rights organization Bits of Freedom, said Friday.

First of all, allowing police investigators to hack computers in other countries might encourage other governments to introduce similar legislation, but not necessarily with the same limitations, van Daalen said. “This could escalate into a digital arms race.”

The proposed legislation would create an incentive for governments to keep software vulnerabilities secret because they would need to exploit those vulnerabilities to attack systems used by cybercriminals, van Daalen said.

There are already security companies and independent researchers that sell zero-day exploits — exploits for unpatched vulnerabilities — to governments instead of reporting the vulnerabilities to vendors. In addition, some governments have openly admitted to developing military cyberoffensive capabilities.

Van Daalen believes that expanding the potential use of such exploits by law enforcement agencies will help the zero-day exploit market grow, which in turn will result in fewer vulnerabilities being reported and patched.

Governments could also pressure vendors to delay fixing vulnerabilities, van Daalen said. An example of this was when the Dutch government convinced Microsoft to delay the blacklisting of the DigiNotar digital certificates on Windows computers in the Netherlands for a few days in order to allow the government to take measures, despite the fact that the issue represented a security risk for all Windows users in the country, he said.

“There’s no doubt that there’s already a growing (and disquieting) market in the for-fee disclosure and exploitation of vulnerabilities, and this proposal could certainly further legitimize it: the possible advantages in terms of action against criminals (leaving aside ethical objections) have to be balanced against the likely, deleterious effects on the community of Internet users as a whole,” said David Harley, a senior research fellow at antivirus vendor ESET, via email on Friday.

Harley agrees with van Daalen that the proposed legislation could have a global impact. “It’s not possible to guarantee that the effects of these measures will be restricted to criminal elements: if the proposal succeeds in its present form, collateral damage in terms of the application of monitoring and attack technologies could be worldwide,” he said.

“Is it really feasible to take this approach effectively without breaching the sovereignty of other states? Even if agreement could be reached with other states on international legislation, does this proposal take into account the quid pro quo of giving foreign agencies such sweeping rights of access to the systems of its own citizens?,” Harley asked. “It seems to me that there’s a parallel here with the fact that many in the U.S. seem quite happy with alleged cyberespionage and sabotage against Iran yet show surprise and discontent that those claims have been used as justification for similar action by other nations.” - gATO OuT

 

10/31/12

Happy Satoshi Nakamoto -Bitcoin- Day Nov 1

gAtO wAs- thinking about one of my heroes SATOSHI NAKAMOTO only 4 years ago November 1, 2008 he posted the research paper describing a new digital currency called BITCOIN. He cracked the problem that had stumped cryptographers for decades a DIGITAL CURRENCY convenient and untraceable with no over site from any government or bank.

STOP RIGHT HERE -money $$ with – NO GOVERNMENT  – NO BANKS

gAtO’s –> gAtOmAlO sAy – I am Satoshi Nakamoto

Ecash was the first as early as 1990’s but they failed because they relied on governments, banks and credit card companies. Banks and governments own us, the bank owns your house that your paying off, You pay tax’s on your property while the bank owns it. We all pay interest and the bankers live only for interest.

As anyone can see it’s in the best interest of all banks and governments that all world wide digital currency fail, unless they control it. It’s NOT only numbers, math and cryptology that makes these bankers shake in fear. But losing control of peoples moneys. Who Wins?  It’s the people immune to printing press happy -Federal Reserve bankers having all the control. The bankers cannot control this new digital currency control by people that have Nose rings -/ so they vilify these people -/cyberpunks that spread the word of their guilt. They make Bitcoins evil- Wikileaks is evil -the scum in the black market like Silk Road-  and Black MArket Reload use it so it’s evil –with your logic all Bitcoin is evil,

So congressman, senator when you paid that hooker on our tax dollar, when you pay the young man to have sex with you from Ohio – the swing state –/ the US  money you use is as EVIL as Bitcoin because it was used in a evil crime…. Evil is evil, money is money. simple to gATO sorry I rage—-

Political pressure has been payed by the banker to People like Senator Schumer which I used to like SCREAMED at the DEA to SHUT DOWN Silk Road which he called “the most brazen attempt to peddle drugs online that we have ever seen” – Yeah Silk Road is still ONLINE last I check. I guess the DEA can’t mess with cryptology and math. It’s science guy’s it basic and simple and elegant and it works. Tor onion network uses math and cryptology and it works so why can’t a digital currency like Bitcoin work.

BITCOIN CANNOT WORK – it’s beta software boy and girl – SATOSHI told us before he disappeared (2010) as he appeared ” in mystery” . SATOSHI is a cult hero “invisivle and  anonymous”- he warned us when he saw Wikileaks use Bitcoins as a donation tool -(this was the introduction of BITCOINS to the whole wide world -/- that it was still to early -/Bitcoin was only 2 years old at the time/  – SATOSHI  final words were “Bitcoin is pocket change (21 Million max Bitcoins) the heat you bring (from the exposure to the gov’s and banks and the world) would likely destroy us at this stage”.

SATOSHI was trying to warn us that the Software Bitcoin is only the beginning of digital currency. As gAtO see’s it in his loco-world mind view —/ If the people control their own money, next people will want to govern themselves and THEY have seen the effects of the Arab Spring and other cases were “the people” took back their country back from currupt politicians. Follow the -DIGITAL currency – gAtO oUt